(1.) BY this reference under Section 256(1) of the I.T. Act, 1961 (hereinafter referred to as "the Act"), the Income-tax Appellate Tribunal, Indore Bench, has referred the following question of law to this court for its opinion:
(2.) THE material facts giving rise to this reference, as set out in the statement of the case, briefly are as follows:
(3.) IN Badri Narain Kaski Prasad v. Addl. CIT [1978] 115 ITR 858, the Full Bench of the Allahabad High Court held that where a minor admitted to the benefits of a partnership attains majority and elects to be a partner of the firm, there is no change in the constitution of the firm but there is a change in the shares of the partners and in case the original instrument of partnership evidences this change, the firm is entitled to continuation of registration under Section 184(7) of the Act. IN the instant case, the Commissioner has found that the partnership deed has made no provision for the event when the minor admitted to the benefits of partnership would become a major. A Division Bench of this court in such a situation has held as follows in Durgaprasad Rajaram Adatiya v. CIT [1982] 134 ITR 601 at p. 608 :